Internet motor vehicle sales

ABSTRACT

This invention utilizes information technology to a degree not previously employed in the sales of motor vehicles and related products and services, providing customers with a high level of functionality, pertinent information, choices and control over the process, while delivering operating efficiencies and streamlined processes to dealers and manufacturers.

BACKGROUND OF THE INVENTION

[0001] This invention will permit motor vehicle dealers to provide fullyfunctional, remote electronic commerce services to their customers viathe internet or other appropriate electronic medium. Within this remote,on-line and fully-automated framework, dealers will provide: 1)fixed-price sales and negotiation-based trade-ins; 2) interactivenegotiation-based selling and trading-in; and 3) facilities for shoppersto submit fully-committed and time-specified bids (to purchase) and asks(to trade-in) into a host (electronic) environment for viewing andpossible acceptance by dealer(s). These (3) methods will see dealerprices float freely while impacted by supply and demand, season, weatherconditions, model year, name plate, individual business strategy, or anyother reasonable condition or preference. Also within this framework,shoppers can select and view audiovisual demonstrations of vehicles,search inventory and custom-build vehicles, submit bids with therequired deposit (credit/debit card or electronic funds transfer) andinstantly obtain financing. Customers may also elect to have theirpurchases delivered to a location of their choice.

[0002] These functions will provide dealerships with comprehensive,end-to-end e-commerce solutions that are being demanded by anever-increasing segment of the population. When combined with thecurrent face-to-face model, these facilities will allow dealerships tosolidify and enhance their role in the industry, while maintaining thenecessary competitive environment from which consumers gain the mostbenefit. The advanced technologies will reduce administrative andselling costs, while providing efficiencies in many other areas,benefiting manufacturers, dealers and consumers.

[0003] The PTO classification is #705, Data processing: Financial,Business Practice, Management, or Cost/Price Determination. The subclassis #26, Electronic Shopping.

BRIEF SUMMARY OF THE INVENTION

[0004] The Invention Consists of:

[0005] Knowledge bases containing all the required information to allowcustomers to make informed decisions on the purchase of vehicles, parts,accessories and services;

[0006] Database(s), available to customers that consists of all new andused vehicles, spare parts and accessories available for sale bydealers;

[0007] Virtual showrooms for purchasers to roam as they view and examinevehicles, features and options;

[0008] Software tools that allow purchasers to virtually custom-buildvehicles on-line;

[0009] Intelligent, price-adjusting software that utilize currentinformation from always-on interface with both macro and micro views ofthe industry and dealership as well as weather and economic conditions;

[0010] Software that allows remote shoppers to interact in real timewith dealer's fully automated, fully informed, intelligent anddecision-making systems that utilize highly relevant information suchas: 1) the sequence of a bid; 2) the amount (currency) of a bid inrelationship to the ‘MSRP’, ‘Dealer Cost’ and ‘Dealer established TargetPrice’; 3) the inclusion of a trade-in and it's value to the Dealer; andother pertinent data.

[0011] Internet/online banking facilities such as electronic fundstransfer, credit or debit card, or other similar method of payment thatwill allow customers to transfer/submit funds with their offers to thedealers;

[0012] Virtual Private Network, Internet Service Provider, ApplicationService Provider, Storage Utility and Network facilities to allow forhighly accessible, toll free connections between customers, dealers,manufacturers and other relevant business partners;

[0013] Server side computer hardware and software to accommodateprograms, graphics and data and facilitate functions, as well as clientside Personal Computers (PC), Personal Digital Assistants (PDA),Telephones (wireline and wireless), Interactive TV sets and otherDigital Devices;

[0014] Call centers to assist customers when needed.

[0015] This Invention Allows Customers:

[0016] To remain in the relative comfort and safety of the home, office,or other indoor facility as he/she visits any number of dealerships invirtual reality, any distance away, 24 hours a day, 365 days a year, inany type of weather conditions;

[0017] Quick and easy access to vast amounts of technical and otherpertinent data/documentation (on-line), thereby allowing for moreinformed and rational decisions regarding their purchases;

[0018] Access to a broad and deep selection of vehicles and relateditems which can be viewed and examined in a very narrow window of timethrough virtual reality tours of the dealers' inventories;

[0019] Who may be uncomfortable with the face-to-face dealing andlengthy sessions of negotiation with highly skilled salespersons andmanagers, to effectively complete end-to-end electronic purchases andrelated transactions thus providing more gratifying and time-efficientexperiences.

[0020] The objective of the invention is to provide the motor vehicleindustry with state-of-the-art technology for interaction with end usersthat choose, for varying reasons, to communicate electronically whendealing with industry representatives, thus enhancing the experience forboth seller and buyer.

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWING

[0021] Not Applicable

DETAILED DESCRIPTION OF THE INVENTION

[0022] The invention will permit the Dealers to provide electronic-basedremote sales and related communication (e-commerce) for customers as anoption to the traditional face-to-face method, while effectivelymanaging pricing policy by establishing ‘Dealer target Prices’ for allvehicles, either individually or by groups. The highly intelligent,automated system will then continuously manage all related processes toensure that overall target levels are consistently achieved.Participating dealers' systems (inventory, financial, sales, service andcustomer records) will interface electronically in real time processingmode or be synchronize with the ‘Motor Vehicle Dealer e-tailing’ system(the ‘Invention’) as required, in order to fully enable remote,electronic sales and service. The system (‘Invention’) will alsointerface electronically in real time processing mode, with selectedFinancial Institutions (lenders, deposit, credit/debit card andinsurance) as well as Credit Reporting and Credit Evaluating andApproving facilities. The system will contain links to the participatingManufacturers' web sites.

[0023] The shopper will access the ‘Motor Vehicle Dealer e-tailing’system (Invention) website which will be the ‘Portal’ or ‘Launch Pad’ aswell as the e-commerce site. He/she may elect to research a vehicle(s)using the information provided by the manufacturer(s) in which casehe/she will click on the link provided at the ‘Portal’, do the research,then return to the ‘Portal’. He/she may (also) choose to do research ata web facility provided by some level of Government or otherindependent/non-affiliated site. Most of the reputable sites can also beaccessed from the ‘Portal’.

[0024] Shoppers must provide: 1) the personal information requested; 2)the method and details of payment; and 3) a user name and password inorder to gain access to all the functions required for a completeshopping experience. The requested information will be used to establishan account for the user that will permit instant future access (username and password only) as well as provide instant payment, deliveryinstructions and checkout. If the shopper does not provide the requestedinformation, or the payment information cannot be authenticated, accesswill not be allowed beyond the point of request.

[0025] Upon completion of the research, or if research is not required,the shopper then utilizes the numerous search tools available forlocating vehicles, parts, accessories, service, etc. Inventory includesnew vehicles at the manufacturing stage and in transit, as well as usedvehicles inbound (traded-in or otherwise purchased but not yet receivedat the dealer's lot).

[0026] If unable to locate a suitable (new vehicle) choice from dealers'inventories, the shopper may elect to access the related manufacturer'sweb site where he/she will be provided the tools to readily enablehim/her to virtually custom-build a vehicle to be ordered from thefactory. The specifications are then conveyed to the portal where theprocess is continued with the selected dealer.

[0027] Once a selection is made, the shopper is provided apartially-completed, on-line Bill-of-Sale or Lease Agreement with thefull description of the vehicle including the manufacturer's suggestedretail price for a new vehicle or the dealer's list price for used. Theshopper is then required to select one of the following formats:

[0028] Purchase vehicle with down-payment of $_+_without trade-in;

[0029] Show approximate monthly payments for #_+_month term

[0030] Lease vehicle with down-payment of $_+_without trade-in for #_+_months;

[0031] Standard mileage allowance #_*_; Cash Back $_*_(—)

[0032] Non-standard mileage allowance #_+_; Cash Back $_*_(—)

[0033] Standard mileage allowance #_*_; Optional Buy-Back $_*_(—)

[0034] Non-standard mileage allowance #_+_; Optional Buy-Back $_*_(—)

[0035] Lessee's Guarantee of Residual/Purchase $*_*_ (normal use)

[0036] Lessee's Guarantee of Residual/Purchase $_+_ (additional use)(minimum is value for normal use)

[0037] Purchase vehicle with down-payment of $_+_ and include trade-inas a combined transaction only (net-price);

[0038] Show approximate monthly payments for #_+_ month term

[0039] Lease vehicle with down-payment of $_+_ and include trade-in as acombined transaction only (net price) for #_+_ months;

[0040] Standard mileage allowance #_*_; Cash Back $_*_(—)

[0041] Non-standard mileage allowance #_+_; Cash Back $_*_(—)

[0042] Standard mileage allowance #_*_; Optional Buy-Back $_*_(—)

[0043] Non-standard mileage allowance #_+_; Optional Buy-Back $_*_(—)

[0044] Lessee's Guarantee of Residual/Purchase $_*_ (normal use)

[0045] Lessee's Guarantee of Residual/Purchase $_+_ (additional use)(minimum is value for normal use)

[0046] * system generated

[0047] + inserted by shopper

[0048] N.B. Non-standard mileage allowance (minimum is standardallowance)-If the shopper selects an option with this clause, theResidual value is adjusted as follows:

[0049] Non-standard allowance #_(—)

[0050] Less standard allowance #_(—)

[0051] Sub-total #_(—)

[0052] times (×) dealer inserted cost per additional mile/km $_(—)

[0053] Residual reduced by $_(—)

[0054] If the shopper selects an option that includes a ‘trade-in’, thetrade-in section of the document is highlighted and he/she is requestedto provide details of the trade including any outstanding liens and theamount(s). Users can also access the site for the sole purpose ofselling/trading-in vehicles to dealers. The user then selects the year,make, model, engine and transmission specifications, and optionalequipment, then records the color (interior and exterior) and insertsthe odometer reading and their Postal/Zip code. The shopper is nextprovided with a ‘virtual walkaround’ checklist that allows him/her torate the condition of various components/areas of the vehicle from whichan overall rating and consequently the trade-in/wholesale value isderived.

[0055] Acquire Vehicle Without a Trade-in

[0056] The shopper either:

[0057] a) clicks on the ‘BUY’ or ‘LEASE’ button to acquire the vehicleat the dealer's fixed price if a ‘Fixed Price’ is displayed. Therequired deposit is immediately processed and if approved, binds thedeal conditional only on financing.

OR

[0058] b) inserts a bid amount (total price for a purchase; monthlypayment for a lease) and clicks on the ‘BID’ button. The shopper maysubmit a blank bid initially, in order to have the system begin theprocess by asking a price. The system either accepts the shopper's bidor responds by asking a different price. The shopper has the option ofeither accepting the system's asking price or rejecting it andsubmitting another bid. The process could conceivably be repeatednumerous times until either: 1) the system accepts the shopper's bid; or2) the shopper accepts the system's asking price; or 3) the systemindicates to the shopper that the final asking price is being displayedwherein the shopper either accepts or rejects this final asking price.Upon acceptance of either a bid by the system or ask by the shopper, therequired deposit is immediately processed and if approved, binds thedeal conditional only on financing. If the two sides (dealer andshopper) are unable to consummate a deal, the shopper is requested tosubmit his/her final Bid (offer) to the Electronic Host System inaccordance with {circle over (c)} below. If the dealer's final ask isrejected by the shopper, the session is terminated.

[0059] If the shopper initially submits a blank bid, the system respondswith the MSRP (new) or Dealer List Price (used) for a sale, or a leaseprice based on the MSRP/Dealer List Price as the capitalized cost. Theshopper either accepts the asked price or submits a bid price of his/herown. The system configures/calculates the responses to the shopper'sbids in accordance with the following algorithms:

[0060] Response to 1^(st) Bid

[0061] Accepted if the bid meets or exceeds the mid-point between thetarget price and the MSRP/Dealer List Price for a Purchase. The Bid fora Lease Payment must meet or exceed the payment calculation based on thecapital cost of ‘the mid-point between the Target Price and MSRP/DealerList Price

Otherwise

[0062] Calculates and asks a different price for a Purchase based on thefollowing:

[0063] $_ Bid Price

[0064] $_ (+) Difference between Target and Bid Price

[0065] $_ (+) 4% of Target Price

[0066] $_ (sum total) Asking Price

[0067] Calculates and asks a different price for a Lease Payment basedon the following:

[0068] $_ Bid Price (i.e. monthly payment) *reverse converted to thecapital cost ($)

[0069] *payment amount ×# of payments +residual value −(minus) costs[interest, administration, other]

[0070] $_ (+) Difference between Target and Bid Price

[0071] $_ (+) 4% of Target Price

[0072] $_ (sum total) Capital cost for use in calculating payment below

[0073] $_ Asking Price (i.e. monthly payment)

[0074] Response to 2^(nd) Bid

[0075] Accepted if the bid meets or exceeds the mid-point between thetarget price and the mid-point referred to in the ‘Response to 1^(st)Bid’ for a Purchase. The Bid for a Lease Payment must meet or exceed thepayment calculation based on the capital cost of “the mid-point betweenthe Target Price and the 1^(st) mid-point”

Otherwise

[0076] Calculates and asks a different price for a Purchase based on thefollowing:

[0077] $_(—) 2^(nd) Bid Price

[0078] $_ (+) Difference between Target and 2^(nd) Bid Price

[0079] $_ (+) 3.5% of Target Price

[0080] $_ (sum total) Asking Price

[0081] Calculates and asks a different price for a Lease Payment basedon the following:

[0082] $_(—) 2^(nd) Bid Price (i.e. monthly payment) *reverse convertedto the capital cost ($)

[0083] $_ (+) Difference between Target and 2^(nd) Bid Price

[0084] $_ (+) 3.5% of Target Price

[0085] $_ (sum total) Capital cost for use in calculating payment below

[0086] $_ Asking Price (i.e. monthly payment)

[0087] Response to 3^(rd) Bid

[0088] Calculates and asks a different price for a Purchase based on thefollowing:

[0089] $_(—) 3^(rd) Bid Price

[0090] $_ (+) Difference between Target and 3^(rd) Bid Price

[0091] $_ (+) 3% of Target Price

[0092] $_ (sum total) Asking Price

[0093] Calculates and asks a different price for a Lease Payment basedon the following:

[0094] $₁₃ 3^(rd) Bid Price (i.e. monthly payment) *reverse converted tothe capital cost ($)

[0095] $_ (+) Difference between Target and 3^(rd) Bid Price

[0096] $_ (+) 3% of Target Price

[0097] $_ (sum total) Capital cost for use in calculating payment below

[0098] $_ Asking Price (i.e. monthly payment)

[0099] Response to 4^(th) Bid

[0100] Calculates and asks a different price for a Purchase based on thefollowing:

[0101] $_(—) 4^(th) Bid Price

[0102] $_ (+) Difference between Target and 4^(th) Bid Price

[0103] $_ (+) **2.5% of Target Price

[0104] $_ (sum total) Asking Price

[0105] Calculates and asks a different price for a Lease Payment basedon the following:

[0106] $_(—) 4^(th) Bid Price (i.e. monthly payment) *reverse convertedto the capital cost ($)

[0107] $_ (+) Difference between Target and 4^(th) Bid Price

[0108] $_ (+) **2.5% of Target Price

[0109] $_ (sum total) Capital cost for use in calculating payment below

[0110] $_ Asking Price (i.e. monthly payment)

[0111] Response to 5^(th) Bid

[0112] If the 4^(th) Asking Price for a Purchase exceeds the shopper's5^(th) Bid by more than the **(x% of Target Price) amount, then the nextAsking Price (5^(th)) becomes the final one for the session and is thelesser of either a) or b) below:

[0113] a) the 4^(th) Asking Price;

or

[0114] b) $_ Target Price

[0115] $_ (+) ½ of the difference between the Target and the 5^(th) Bid

[0116] $_ (sum total) Asking Price

[0117] However, if the 4^(th) Asking Price for a Purchase does notexceed the shopper's 5^(th) Bid by more than the **(x% of Target Price)amount, then the system selects the final Asking Price (5^(th)) from thehigher of the Shopper's 5^(th) Bid or the Target Price.

[0118] If the 4^(th) Asking Price (reverse converted to capital cost)for a Lease Payment exceeds the shopper's 5^(th) Bid (reverse converted)by more than the **(x% of Target Price) amount, then the next AskingPrice (5^(th)) becomes the final one for the session and is the lesserof either a) or b) below:

[0119] a) the 4^(th) Asking Price;

or

[0120] b) $_ Target Price

[0121] $_ (+) ½ of the difference between the Target and the [5^(th) Bidreverse converted ($)]

[0122] $_ (sum total) Capital cost for use in calculating payment below

[0123] $_ Asking Price (i.e. monthly payment)

[0124] However, if the 4^(th) Asking Price (reverse converted) for aLease Payment does not exceed the shopper's 5^(th) Bid (reverseconverted) by more than the **(x% of Target Price) amount, then thesystem selects the final Asking Price (5^(th)) from the higher of theShopper's 5^(th) Bid or payment based on Target Price as the capitalcost.

OR

[0125] c) inserts a bid amount (total price for a purchase; monthlypayment for a lease) and expiry date (of the bid) into the (electronic)mobile agent/representative and clicks on the submit button to send thebid to an electronic host environment where it will reside awaitingacceptance or termination. Bids must conform to minimum requirements andspecifications in order to be accepted by the host. The system responseis “Thank you for your Bid. The bid will be placed in the Host Reservoirand held along with others awaiting Dealer's acceptance, Shopper'samendment or natural termination. You will be notified by e-mail when achange in status occurs. Please check your mailbox regularly forupdates.”

[0126] The dealer (or dealers to whom the bid was directed) will beinstantly notified of all new incoming or amended bids and have ongoingaccess to those outstanding for their stores (only). Bids are either: 1)accepted by the dealer as submitted; or 2) revised, extended orcancelled by the bidder/shopper prior to dealer's acceptance; or 3)terminated upon: a) expiry; or b) disposal of the vehicle by theoriginally specified dealer (inventory); or c) build out—themanufacturer no longer accepting orders for the specified year and model(factory order); or d) subsequent acquisition of another vehicle throughthis portal from any of the associated dealers(post-acceptance/pre-financing). Upon acceptance by the dealer, therequired deposit is immediately processed and if approved, binds thedeal conditional only on financing.

[0127] Acquire and Trade-in Vehicles Simultaneously

[0128] The shopper either:

[0129] a) clicks on the ‘BUY’ or ‘LEASE’ button to acquire the vehicleat the dealer's fixed price if a ‘Fixed Price’ is displayed. The systemresponds with the Net Asking Price (fixed price less the value of thetrade) the shopper has the option of accepting it, or rejecting it andsubmitting a Net Bid Price. The process could conceivably be repeatednumerous times until either: 1) the system/dealer accepts the shopper'sNet Bid Price; or 2) the shopper accepts the system's/dealer's NetAsking Price; or 3) the system indicates to the shopper that the finaldealer's Net Asking Price is being displayed and the shopper eitheraccepts or rejects this final Net Asking Price. Upon acceptance, therequired deposit is immediately processed and if approved, binds thedeal conditional only on financing. If the dealer's final net ask isrejected by the shopper, the session is terminated.

[0130] Response to 1^(st) Bid

[0131] The higher of 1) or 2) below for a Purchase:

[0132] 1) 1^(st) Net Bid

[0133] 2) 1^(st) Net Asking Price (−) minus 5% of the difference betweenthe [wholesale and retail value of the trade]

[0134] The higher of 1) or 2) below for a Lease Payment:

[0135] 1) 1^(st) Net Bid

[0136] 2) 1^(st) Net Asking Price reverse converted to capital cost (−)minus 5% of the difference between the [wholesale and retail value ofthe trade]. The result used as the capital cost for calculating the newNet Asking Price (i.e. monthly payment)

[0137] Response to 2^(nd) Bid and dealer's final ‘Net Asking Price’

[0138] The higher of 1) or 2) below for a Purchase:

[0139] 1) 2^(nd) Net Bid

[0140] 2) 1^(st) Net Asking Price (−) minus 10% of the differencebetween the [wholesale and retail value of the trade]

[0141] The higher of 1) or 2) below for a Lease Payment:

[0142] 1) 2^(nd) Net Bid

[0143] 2) 1^(st) Net Asking Price reverse converted to capital cost (−)minus 10% of the difference between the [wholesale and retail value ofthe trade]. The result used as the capital cost for calculating the newNet Asking Price (i.e. monthly payment)

OR

[0144] b) inserts a net bid amount (total price for a purchase ormonthly payment for a lease) after accounting for the net valuation ofthe trade-in and clicks on the ‘NET BID’ button. The shopper may submita blank bid initially, in order to have the system begin the process byasking a price. The system either accepts the shopper's net bid orresponds by asking a different net price. The shopper has the option ofeither accepting the system's net asking price or rejecting it andsubmitting a different net bid. The process could conceivably berepeated numerous times until either: 1) the system accepts theshopper's net bid; or 2) the shopper accepts the system's net askingprice; or 3) the system indicates to the shopper that the final netasking price is being displayed wherein the shopper either accepts orrejects this final net asking price. Upon acceptance of either a net bidby the system or a net asking price by the shopper, the required depositis immediately processed and if approved, binds the deal conditionalonly on financing. If the two sides (dealer and shopper) are unable toconsummate a deal, the shopper is requested to submit his/her final Bid(offer) to the Electronic Host System in accordance with {circle over(e)} below. If the dealer's final net ask is rejected by the shopper,the session is terminated.

[0145] If the shopper initially submits a blank bid, the system respondswith the MSRP/List minus the wholesale/trade-in value of the proposedtrade for a sale, or a lease price based on the MSRP/List minus thewholesale/trade-in value as the capitalized cost. The shopper eitheraccepts the net price asked or submits a net bid price of his/her own.The system configures/calculates the responses to the shopper's bids inaccordance with the following algorithms:

[0146] Response to 1^(st) Bid

[0147] Accepted if the net bid meets or exceeds the mid-point betweenthe target price and the MSRP/List minus the net value of the trade fora Purchase. The Net Bid for a Lease Payment must meet or exceed thepayment calculation based on a capital cost of ‘the mid-point betweenthe Target Price and MSRP/List minus the net value of the trade’

Otherwise

[0148] Calculates and asks a different net price for a Purchase based onthe following:

[0149] $_ Net Bid Price plus (+) net wholesale/trade-in value

[0150] $_ (+) Target price minus (−) the sum of [the Net Bid Price andnet wholesale/trade-in value]

[0151] $_ (+) 4% of Target Price

[0152] $_ (−) net wholesale/trade-in value

[0153] $_ (sum total) Net Asking Price

[0154] Calculates and asks a different price for a Net Lease Paymentbased on the following:

[0155] $_ Net Bid Price (i.e. monthly payment) *reverse converted to acapital cost ($) value, plus (+) net wholesale/trade-in value.

[0156] *payment amount ×# of payments +residual value minus (−) costs[interest, administration, other]

[0157] $_ (+) Target Price minus (−) the sum of [the Net Bid Pricereverse converted to a capital cost ($) value plus the netwholesale/trade-in value]

[0158] $_ (+) 4% of Target Price

[0159] $_ (−) net wholesale/trade-in value

[0160] $_ (sum) Total is Capital cost for use in calculating paymentbelow

[0161] $_ Net Asking Price (i.e. monthly payment)

[0162] Response to 2^(nd) Bid

[0163] Accepted if the net bid meets or exceeds the mid-point betweenthe target price and the mid-point referred to in the ‘Response to1^(st) Bid’ minus the net value of the trade, for a Purchase. The NetBid for a Lease Payment must meet or exceed the payment calculationbased on a capital cost of “the mid-point between the Target Price andthe mid-point referred to in the ‘response to 1^(st) bid’ minus the netvalue of the trade.”

Otherwise

[0164] Calculates and asks a different net price for a Purchase based onthe following:

[0165] $_(—) 2^(nd) Net Bid Price plus (+) net wholesale/trade-in value

[0166] $_ (+) Target price minus (−) the sum of [the 2^(nd) Net BidPrice and net wholesale/trade-in value]

[0167] $_ (+) 3.5% of Target Price

[0168] $_ (−) net wholesale/trade-in value

[0169] $_ (sum total) Net Asking Price

[0170] Calculates and asks a different price for a Net Lease Paymentbased on the following:

[0171] $_(—) 2^(nd) Net Bid Price (i.e. monthly payment) *reverseconverted to a capital cost ($) value, plus (+) net wholesale/trade-invalue.

[0172] *payment amount ×# of payments +residual value minus (−) costs[interest, administration, other]

[0173] $_ (+) Target Price minus (−) the sum of [the 2^(nd) Net BidPrice reverse converted to a capital cost ($) value plus the netwholesale/trade-in value]

[0174] $_ (+) 3.5% of Target Price

[0175] $_ (−) net wholesale/trade-in value

[0176] $_ (sum) Total is Capital cost for use in calculating paymentbelow

[0177] $_ Net Asking Price (i.e. monthly payment)

[0178] Response to 3^(rd) Bid

[0179] Calculates and asks a different net price for a Purchase based onthe following:

[0180] $_(—) 3rd Net Bid Price plus (+) net wholesale/trade-in value

[0181] $_ (+) Target price minus (−) the sum of [the 3rd Net Bid Priceand net wholesale/trade-in value]

[0182] $_ (+) 3% of Target Price

[0183] $_ (−) net wholesale/trade-in value

[0184] $_ (sum total) Net Asking Price

[0185] Calculates and asks a different price for a Net Lease Paymentbased on the following:

[0186] $_(—) 3rd Net Bid Price (i.e. monthly payment) *reverse convertedto a capital cost ($) value, plus (+) net wholesale/trade-in value.

[0187] *payment amount ×# of payments +residual value minus (−) costs[interest, administration, other]

[0188] $_ (+) Target Price minus (−) the sum of [the 3rd Net Bid Pricereverse converted to a capital cost ($) value plus the netwholesale/trade-in value]

[0189] $_ (+) 3% of Target Price

[0190] $_ (−) net wholesale/trade-in value

[0191] $_ (sum) Total is Capital cost for use in calculating paymentbelow

[0192] $_ Net Asking Price (i.e. monthly payment)

[0193] Response to 4^(th) Bid

[0194] Calculates and asks a different net price for a Purchase based onthe following:

[0195] $_(—) 4th Net Bid Price plus (+) net wholesale/trade-in value

[0196] $_ (+) Target price minus (−) the sum of [the 4th Net Bid Priceand net wholesale/trade-in value]

[0197] $_ (+) **2.5% of Target Price

[0198] $_ (−) net wholesale/trade-in value

[0199] $_ (sum total) Net Asking Price

[0200] Calculates and asks a different price for a Net Lease Paymentbased on the following:

[0201] $_(—) 4th Net Bid Price (i.e. monthly payment) *reverse convertedto a capital cost ($) value, plus (+) net wholesale/trade-in value.

[0202] *payment amount ×# of payments +residual value minus (−) costs[interest, administration, other]

[0203] $_ (+) Target Price minus (−) the sum of [the 4th Net Bid Pricereverse converted to a capital cost ($) value plus the netwholesale/trade-in value]

[0204] $_ (+) **2.5% of Target Price

[0205] $_ (−) net wholesale/trade-in value

[0206] $_ (sum) Total is Capital cost for use in calculating paymentbelow

[0207] $_ Net Asking Price (i.e. monthly payment)

[0208] Response to 5^(th) Bid

[0209] If the 4^(th) Net Asking Price for a Purchase exceeds theshopper's 5^(th) Net Bid by more than the **(x% of Target Price) amount,then the next Net Asking Price (5^(th)) is the lesser of either a) or b)below:

[0210] a) the 4^(th) Net Asking Price minus 5% of the difference betweenthe [wholesale/trade-in and retail value of the trade]

or

[0211] b)$_ Target Price minus the wholesale/trade-in value

[0212] $_ (+) ½ of the difference between the 5^(th) Net Bid and the[Target Price minus (−) the wholesale/trade-in value]

[0213] $_ (−) 5% of the difference between the [wholesale/trade-in andretail value of the trade]

[0214] $_ (sum total) Net Asking Price

[0215] However, if the 4^(th) Net Asking Price for a Purchase does notexceed the shopper's 5^(th) Net Bid by more than the **(x% of TargetPrice) amount, then the system selects the next Net Asking Price(5^(th)) from the higher of the ‘Shopper's 5^(th) Net Bid’ or, the‘Target Price minus [the net wholesale/trade-in value plus (+) 5% of thedifference between the wholesale/trade-in and retail value of thetrade]’.

[0216] If the 4^(th) Net Asking Price (reverse converted to capitalcost) for a Lease Payment exceeds the shopper's 5^(th) Net Bid (reverseconverted) by more than the **(x% of Target Price) amount, then the nextNet Asking Price (5^(th)) is the lesser of either a) or b) below:

[0217] a) $_(—) 4^(th) Net Asking Price (reverse converted to capitalcost)

[0218] $_ (−) 5% of the difference between [the wholesale/trade-in andthe retail value of the trade]

[0219] $_ (sum total) Capital cost for use in calculating payment below

[0220] $_ Net Asking Price (i.e. monthly payment)

or

[0221] b) $_ Target Price minus the wholesale/trade-in value

[0222] $_ (+) ½ of the difference between the Target and the [5^(th) NetBid reverse converted ($) plus the wholesale/trade-in value]

[0223] $_ (−) 5% of the difference between [the wholesale/trade-in andthe retail value of the trade]

[0224] $_ (sum total) Capital cost for use in calculating payment below

[0225] $_ Asking Price (i.e. monthly payment)

[0226] However, if the 4^(th) Net Asking Price (reverse converted) for aLease Payment does not exceed the shopper's 5^(th) Net Bid (reverseconverted) by more than the **(x% of Target Price) amount, then thesystem selects the next Net Asking Price (5^(th)) from the higher of the‘5^(th) Net Bid’ or the Net Asking Price below:

[0227] $_ Target Price minus the wholesale/trade-in value

[0228] $_ (−) 5% of the difference between [the wholesale/trade-in andthe retail value of the trade]

[0229] $_ (sum total) Capital cost for use in calculating payment below

[0230] $_ Net Asking Price (i.e. monthly payment)

[0231] Response to 6^(th) Bid

[0232] If the 4^(th) Net Asking Price for a Purchase exceeds theshopper's 6^(th) Net Bid by more than the **(x% of Target Price) amount,then the next and final Net Asking Price (6^(th)) is the lesser ofeither a) or b) below:

[0233] a) the 4^(th) Net Asking Price minus 10% of the differencebetween the [wholesale/trade-in and retail value of the trade]

or

[0234] b) $_ Target Price minus the wholesale/ trade-in value

[0235] $_ (+) ½ of the difference between the 6^(th) Net Bid and the[Target Price minus (−) the wholesale/trade-in value]

[0236] $_ (−) 10% of the difference between the [wholesale/trade-in andretail value of the trade]

[0237] $_ (sum total) Net Asking Price

[0238] However, if the 4^(th) Net Asking Price for a Purchase does notexceed the shopper's 6^(th) Net Bid by more than the **(x% of TargetPrice) amount, then the system selects the next and final Net AskingPrice (6^(th)) from the higher of the ‘Shopper's 6^(th) Net Bid’ or the‘Target Price minus [the net wholesale/trade-in value plus (+) 10% ofthe difference between the wholesale/trade-in and retail value of thetrade]’.

[0239] If the 4^(th) Net Asking Price (reverse converted to capitalcost) for a Lease Payment exceeds the shopper's 6^(th) Net Bid (reverseconverted) by more than the **(x% of Target Price) amount, then the nextand final Net Asking Price (6^(th)) is the lesser of either a) or b)below:

[0240] a) $_(—) 4^(th) Net Asking Price (reverse converted to capitalcost)

[0241] $_ (−) 10% of the difference between [the wholesale/trade-in andthe retail value of the trade]

[0242] $_ (sum total) Capital cost for use in calculating payment below

[0243] $_ Net Asking Price (i.e. monthly payment)

or

[0244] b) $_ Target Price minus the wholesale/trade-in value

[0245] $_ (+) ½ of the difference between the Target and the [6^(th) NetBid reverse converted ($) plus the wholesale/trade-in value]

[0246] $_ (−) 10% of the difference between [the wholesale/trade-in andthe retail value of the trade]

[0247] $_ (sum total) Capital cost for use in calculating payment below

[0248] $_ Asking Price (i.e. monthly payment)

[0249] However, if the 4^(th) Net Asking Price (reverse converted) for aLease Payment does not exceed the shopper's 6^(th) Net Bid (reverseconverted) by more than the **(x% of Target Price) amount, then thesystem selects the next and final Net Asking Price (6^(th)) from thehigher of the ‘6^(th) Net Bid’ or the Net Asking Price below:

[0250] $_ Target Price minus the wholesale/trade-in value

[0251] $_ (−) 10% of the difference between [the wholesale/trade-in andthe retail value of the trade]

[0252] $_ (sum total) Capital cost for use in calculating payment below

[0253] $_ Net Asking Price (i.e. monthly payment)

OR

[0254] c) inserts a net bid amount (the total price for a purchase ormonthly payment for a lease, after accounting for the net valuation ofthe trade-in) and expiry date (of the bid) into the (electronic) mobileagent/representative then clicks on the ‘SUBMIT’ button to send the bidto an electronic host environment where it will reside awaitingacceptance or termination. Bids must conform to minimum requirements andspecifications in order to be accepted by the host. The dealer ordealers to whom the bid was directed will be instantly notified of thenew incoming bids and have ongoing access to those outstanding for theirstores (only). Bids are either: 1) accepted by the dealer as submitted;or 2) revised, extended or cancelled by the bidder/shopper prior todealer's acceptance; or 3) terminated upon: a) expiry; or b) disposal ofthe vehicle by the originally specified dealer (inventory); or c) buildout—the manufacturer no longer accepting orders for the specified yearand model (factory order); or d) subsequent acquisition of anothervehicle through this portal from any of the associated dealers(post-acceptance/pre-financing). Upon acceptance by the dealer, therequired deposit is immediately processed and if approved, binds thedeal conditional only on financing. Other % Groups (selected at random)Groups 1st 2nd 3rd 4th 5th 6th 7th 8th 9th Response to 1st Bid % 4 3.84.2 4 4 3.8 3.8 4.2 4.2 Response to 2nd Bid % 3.5 3.3 3.7 3.3 3.7 3.53.7 3.5 3.3 Response to 3rd Bid % 3 2.8 3.2 2.8 3.2 3 3.2 3 2.8 Responseto 4th Bid % 2.5 2.3 2.7 2.3 2.7 2.5 2.7 2.5 2.3

Other Parameters or Criteria

[0255] Shoppers' Bids below the dealer's cost will generate thefollowing responses:

[0256] BID RESPONSE

[0257] 1^(st) Bid—Asking Price at MSRP/Dealer List Price for Purchase

[0258] -Lease payment based on Capital cost of MSRP/List

[0259] 2^(nd) Bid—Your Bid is too low, please increase the amount ofyour next Bid

[0260] 3^(rd) Bid—Your Bid is still below the Seller's expectation andrequires a substantial increase

[0261] 4^(th) Bid—Sorry that we are unable to meet your expectationstoday. Please try again later

[0262] During Price negotiations for a vehicle, the Asking Price will bepresented in one of the following two formats:

[0263] 1) Asking Price of vehicle only

[0264] 2) Asking Price combined with additional product(s) or service(s)accompanied by special overall discount(s)

[0265] If the shopper chooses the 1^(st) format, negotiations willcontinue in this manner in the main screen area, while a smaller subscreen (area) will offer pricing in accordance with the 2^(nd) format.This will allow the shopper to randomly add, delete, or reconsiderspecial offers by instantly switching formats rather than having tobegin anew or retrace steps. The options (product(s) or service(s))along with accompanying overall discount(s) added to the sub screen maybe individually deleted or retrieved by the shopper as the processunfolds.

[0266] If the 2^(nd) format is chosen, the negotiation process willcontinue in this manner only (no sub screen). Each new Asking Price willsee additional value items and accompanying overall discounts introducedand offered. These options (product(s) or service(s)) along withaccompanying discount(s) may be individually deleted or retrieved by theshopper as the process unfolds.

[0267] The net pricing (with discount(s)) for additional items willreflect not just the immediate value (profit) of the item to thedealership, but more importantly where applicable, the added values tobe derived from inherent return visits to the dealership.

[0268] Each successive Bid must be higher than the previous one

[0269] During negotiating sessions, all Bids and Asks are compared (inreal time) with the highest price (benchmark) among all (Host) Bids heldin or concurrently added to the Host Reservoir for the same vehicle.Negotiating Bids must exceed the highest price or will receive theresponse: “The Host Reservoir contains a Bid on this vehicle thatexceeds yours. Please submit a higher Bid or select another vehicle fornegotiating purposes.”

[0270] In addition, each negotiating session is constantly beingcompared in real time with all other ongoing sessions involving the samevehicle resulting in a live on-line auction setting with the highestpriced Host entry acting as the minimum Price. Each Bid Price iscompared with all the others in process with only the highest (or 1^(st)highest) proceeding normally, while the others are notified that: “ThePrice of another Bid in process exceeds yours. You can attempt tosupplant it by submitting a higher Bid or pause here while thatinteraction plays out, you'll be notified immediately when it'sfinalized. Alternatively, you may select another vehicle for negotiationpurposes”.

[0271] Bids below a fixed price will not be accepted for vehicles withfixed prices. Response: “Sorry, a fixed price exists for this vehicle.Please utilize the fixed-price function or select another vehicle forwhich to submit a Bid”.

[0272] Members such as Manufacturers, Dealers and After Market Supplierswill be empowered to individually design or select pre-designedtemplates that allow them to customize special offers or programs todifferentiate their brands and encourage shopper participation andloyalty.

[0273] Dealers will individually set acceptable price levels for usedvehicles (trade-ins) by make, model and/or other preferred criteria as apercentage (%) variance (+ or −) of the standard price in accordancewith their individual needs.

[0274] The identity of the shopper remains anonymous until a conditionalagreement is reached between the dealer/system and shopper.

[0275] The system will adjust—on the fly—the maximum number of offers(asking price) allowed each shopper—per vehicle per internetsession—based on the following factors:

[0276] Inventory levels

[0277] Age of inventory

[0278] Sales volumes (representative period)

[0279] Average sale price (representative period)

[0280] Target achievement (representative period)

[0281] When a conditional agreement is reached, the status of thevehicle changes to ‘SOLD/PENDING’ and is temporarily unavailable forsale. The Bill-of-Sale is updated displaying the agreed upon figures forconfirmation by the shopper. Upon confirmation, the purchaser is askedif he/she requires financing in order to finalize the purchase. If theresponse is “no”, the financing condition is removed and the deal isconsummated. If the response from the purchaser is “yes”, or theproposal is a leasing arrangement, he/she is requested to complete thecredit application presented and click on the ‘SUBMIT’ button. Theapplication is immediately processed and the applicant notified of thecredit decision within two minutes. An accepted credit applicationremoves the financing condition and the deal is consummated. If for somereason the application is declined, the system will suspend and holdcurrent the unfinished process for a specified period while instructingthe shopper to contact the dealer in order to rectify the situation. Thedealer will also be immediately alerted in order to resolve thebottleneck.

[0282] The shopper is then requested to provide the information requiredfor the registration of the vehicle and the session is completed.

[0283] Should the purchaser require assistance at any stage during theprocess, a request will be made electronically at the Portal by him/herto a call center where the necessary assistance will be provided in ahelpful, soft sell, low key manner, keeping in theme with the e-commercemodel.

[0284] Dealers may choose to provide a delivery service for which thedealer may charge a fee to the buyer, the cost of which may be added toor included in the cost of the vehicle. The vehicle is then delivered tothe buyer on the appointed day and at the appointed time, or the buyerattends at the dealership to take delivery.

[0285] As an incentive to customers, the system will randomly select acompleted transaction—one vehicle—from each batch of transactions(number in batch to be determined) and provide a full rebate of the costof the vehicle purchased, effectively giving away a vehicle to onecustomer in each predetermined batch. Each purchaser will be assigned areferral ID (for use by persons referred to the site) since eachqualifying referral will entitle the purchaser to an additional entry inthe aforementioned draw. In addition, members/customers will participatein a ‘Customer Loyalty program’ that will award points for eachcompleted transaction to be used for purchases at participatingdealerships as well as for vacation-related expenses.

[0286] 50% of the net profit (before taxes) attributed to the system isto be assigned to a special fund to be used to alleviate ‘Hunger amongPeople of The World’.

What I claim as my invention is this e-commerce model for use by theAutomobile Industry for the sale of motor vehicles, parts, accessoriesand services as described in this specification:
 1. To date, this modelhas not been recognized, established, discussed, prepared forpresentation, created in software or other format, in its entirety, byany other party.